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CITY OF MUSKEGON
CITY COMMISSION MEETING
MARCH 12, 2013
CITY COMMISSION CHAMBERS @ 5:30 P.M.
AGENDA
CALL TO ORDER:
PRAYER:
PLEDGE OF ALLEGIANCE:
ROLL CALL:
HONORS AND AWARDS:
INTRODUCTIONS/PRESENTATION:
CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
B. Special Event Request – Muskegon Bike Time 2013. PLANNING &
ECONOMIC DEVELOPMENT
C. Implementation of Police Command Contract Retirement Changes.
FINANCE
D. Water Filtration Plant Sodium Hypochlorite Feed Pump Replacement.
PUBLIC WORKS
E. Consideration of Bids for Sanitary Sewer Lining (S-663). ENGINEERING
F. Lynx Network – Request for Permit under METRO Act. ENGINEERING
G. Water Treatment Plant Sluice Gates Repair. WATER FILTRATION
H. State of Michigan Public Act 399 Reliability Study. WATER FILTRATION
PUBLIC HEARINGS:
A. Recommendation for Annual Renewal of Liquor Licenses. CITY CLERK
COMMUNICATIONS:
CITY MANAGER’S REPORT:
UNFINISHED BUSINESS:
NEW BUSINESS:
A. Special Event Request – Lakeshore Art Festival. PLANNING &
ECONOMIC DEVELOPMENT
B. Grant Application for Sanitary Sewer Evaluation. ENGINEERING
ANY OTHER BUSINESS:
PUBLIC PARTICIPATION:
Reminder: Individuals who would like to address the City Commission shall do the following:
Fill out a request to speak form attached to the agenda or located in the back of the room.
Submit the form to the City Clerk.
Be recognized by the Chair.
Step forward to the microphone.
State name and address.
Limit of 3 minutes to address the Commission.
(Speaker representing a group may be allowed 10 minutes if previously registered with City Clerk.)
CLOSED SESSION:
ADJOURNMENT:
ADA POLICY: The City of Muskegon will provide necessary auxiliary aids and services to individuals who
want to attend the meeting upon twenty four hour notice to the City of Muskegon. Please contact Ann
Marie Cummings, City Clerk, 933 Terrace Street, Muskegon, MI 49440 or by calling (231) 724-6705 or
TTY/TDD dial 7-1-1 to request a representative to dial (231) 724-6705.
Date: March 12, 2013
To: Honorable Mayor and City Commissioners
From: Ann Marie Cummings, City Clerk
RE: Approval of Minutes
SUMMARY OF REQUEST: To approve minutes of the February 26th
City Commission Meeting and the February 28th Special City
Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
CITY OF MUSKEGON
CITY COMMISSION MEETING
FEBRUARY 26, 2013
CITY COMMISSION CHAMBERS @ 5:30 P.M.
MINUTES
The Regular Commission Meeting of the City of Muskegon was held at City Hall,
933 Terrace Street, Muskegon, Michigan at 5:30 p.m., Tuesday, February 26,
2013.
Mayor Gawron opened the meeting with a prayer from Pastor Tim Cross from
the Living Word Church of Muskegon after which the Commission and public
recited the Pledge of Allegiance to the Flag.
ROLL CALL FOR THE REGULAR COMMISSION MEETING:
Present: Mayor Stephen Gawron, Vice Mayor Lawrence Spataro,
Commissioners Eric Hood, Willie German, Sue Wierengo, Byron Turnquist, and Lea
Markowski, City Manager Bryon Mazade, City Attorney John Schrier, and City
Clerk Ann Marie Cummings.
2013-14 CONSENT AGENDA:
A. Approval of Minutes. CITY CLERK
SUMMARY OF REQUEST: To approve minutes of the February 8th Goal Setting
Session, February 11th Commission Worksession Meeting, and the February 12th
City Commission Meeting.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Approval of the minutes.
B. Approval of Building Contract for 553 Octavius. COMMUNITY &
NEIGHBORHOOD SERVICES
SUMMARY OF REQUEST: To award the Abatement and Building Contract for the
rehabilitation of 553 Octavius to Build-Right Construction for the City of
Muskegon’s Homebuyers Program through Community & Neighborhood
Services. Six bids were received, and the cost estimate from our spec writer was
$121,150.
FINANCIAL IMPACT: The funding for this project has been secured through the
HOME program 2012 grant allocation.
1
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To award Build-Right Construction the contract for
553 Octavius for the Community & Neighborhood Services office.
Motion by Vice Mayor Spataro, second by Commissioner German to approve
the Consent Agenda with the exception of Item C.
ROLL VOTE: Ayes: Hood, Spataro, German, Wierengo, Turnquist, Markowski, and
Gawron
Nays: None
MOTION PASSES
2013-15 ITEM REMOVED FROM THE CONSENT AGENDA:
C. Transportation Resolution. CITY MANAGER
SUMMARY OF REQUEST: To approve the Transportation Resolution, a Michigan
Municipal League initiative, expressing the immediate need to fund the repair of
Michigan’s roads and transportation systems to help make Michigan
communities vibrant in the 21st century.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To approve the resolution.
Motion by Commissioner Turnquist, second by Commissioner Wierengo to
approve the Transportation Resolution.
ROLL VOTE: Ayes: None
Nays: Spataro, German, Wierengo, Turnquist, Markowski, Gawron,
and Hood
MOTION FAILS
2013-16 NEW BUSINESS:
A. Request to Amend the Planned Unit Development for the Terrace Point
Properties – 650 Terrace Point. PLANNING & ECONOMIC DEVELOPMENT
SUMMARY OF REQUEST: Request to amend the Planned Unit Development
(PUD) at the Terrace Point Drive properties, specifically the parcel at 650 Terrace
Point Drive, by Terrace Point Landing, LLC. The original PUD was approved in
1989 for a project that included the hotel, marina, restaurant, public access to
the waterfront and condos. The condos were the only part of the project that
were not completed. This amendment would be to utilize this property for single
family homes.
FINANCIAL IMPACT: None.
2
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Staff recommends approval of the amendment to
the PUD.
COMMITTEE RECOMMENDATION: The Planning Commission unanimously
approved recommendation of the amendment at their February 14th meeting.
Willie Parker absent.
Motion by Vice Mayor Spataro, second by Commissioner Wierengo to approve
the request to amend the Planned Unit Development for the Terrace Point
Properties at 650 Terrace Point.
ROLL VOTE: Ayes: German, Wierengo, Turnquist, Markowski, Gawron, Hood, and
Spataro
Nays: None
MOTION PASSES
B. 2013-2014 City Commission Goals. CITY MANAGER
SUMMARY OF REQUEST: To approve the list of goals for 2013-2014. This list is the
result of the goal setting session held on February 8, 2013.
FINANCIAL IMPACT: Unknown at this time.
BUDGET ACTION REQUIRED: None at this time.
STAFF RECOMMENDATION: To approve the list of goals.
COMMITTEE RECOMMENDATION: The City Commission met on February 8, 2013,
and identified the list of goals for 2013-2014.
Motion by Commissioner Markowski, second by Commissioner German to
approve the list of goals for 2013-2014.
ROLL VOTE: Ayes: Wierengo, Turnquist, Markowski, Gawron, Hood, Spataro, and
German
Nays: None
MOTION PASSES
C. Concurrence with the Housing Board of Appeals Notice and Order to
Demolish the Following: PUBLIC SAFETY
1275 Allen Avenue
665 Allen Avenue (Area 11)
SUMMARY OF REQUEST: This is to request that the City Commission concur with
the findings of the Housing Board of Appeals that the structures are unsafe,
substandard, a public nuisance and that they be demolished within 30 days. It
is further requested that administration be directed to obtain bids for the
3
demolition of the structures and that the Mayor and City Clerk be authorized
and directed to execute a contract for demolition with the lowest responsible
bidder.
FINANCIAL IMPACT: CDBG Funds.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: To concur with the Housing Board of Appeals
decision to demolish.
Motion by Commissioner Hood, second by Vice Mayor Spataro to concur with
the Housing Board of Appeals notice and order to demolish 1275 Allen Avenue
and 665 Allen Avenue.
ROLL VOTE: Ayes: Turnquist, Markowski, Gawron, Hood, Spataro, German, and
Wierengo
Nays: None
MOTION PASSES
2013-17 ANY OTHER BUSINESS: Mayor Gawron commented on the Sappi
property.
Motion by Vice Mayor Spataro, second by Commissioner Markowski to have the
City explore appropriate zone or zones at property known as Sappi and consult
with existing owner as part of the process.
ROLL VOTE: Ayes: Markowski, Gawron, Hood, Spataro, German, Wierengo, and
Turnquist
Nays: None
MOTION PASSES
PUBLIC PARTICIPATION: Public comments were received.
ADJOURNMENT: The City Commission Meeting adjourned at 7:08 p.m.
Respectfully submitted,
Ann Marie Cummings, MMC
City Clerk
4
CITY OF MUSKEGON
SPECIAL
CITY COMMISSION MEETING
February 28, 2013
5:30 p.m.
City Commission Chambers
MINUTES
2013-18
Present: Commissioners Gawron, Spataro, Hood, German, Turnquist, and Markowski.
Absent: Commissioner Wierengo.
City Manager Position.
The City Manager, Bryon Mazade, has announced his plans to retire effective October 1, 2013.
A Special Commission Meeting was called to discuss filling the position.
Motion by Commissioner Turnquist, second by Vice Mayor Spataro to seek outside help
through an RFP to professional search organizations or the MML for purposes of selecting
an agency to assist in selecting a new City Manager.
ROLL CALL VOTE:
Ayes: Spataro, German, Turnquist, Markowski, Gawron, and Hood.
Nays: None.
MOTION PASSES
Adjournment.
Motion by Commissioner Hood, second by Commissioner Spataro to adjourn at 6:08 p.m.
MOTION PASSES
____________________________
Ann Marie Cummings, MMC
City Clerk
CITY COMMISSION MEETING DATE
March 12, 2013
Date: February 11, 2013
To: Honorable Mayor and City Commissioners
From: Cathy Brubaker-Clarke, Director of Community &
Economic Development
Re: Special Event Request – Muskegon Bike Time 2013
SUMMARY OF REQUEST: Family Events has filed a special event application for the
annual Bike Time festival in downtown Muskegon to be held on July 18, 19, & 20, and 21,
2013. Portions of their request require City Commission approval, including some items
that are new for 2013, and some that are the same as in past years. See attached sheet for
details on those requests (waiver of equipment rental fees, use of Bike Time’s own labor
pool when possible, extended beer tent hours, and variation from street closure times
allowed per the special event policy)
FINANCIAL IMPACT: Request that equipment rental fees be waived.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: As in past years, it is recommended that staff be allowed
to make the final decision regarding rental fees and actual costs to be coordinated through
the City Manager. In addition, staff recommends that if Bike Time picks up items such as
picnic tables, bleachers, and trash cans for distribution at the proper locations, there will be
no equipment rental charge to Bike Time. This must first be approved by and coordinated
through City staff. It is also recommended that City staff review staffing levels for City
personnel with the Bike Time staff, with the City making the final decision on the number of
City staff needed for the event.
Regarding street closures, staff recommends approval with the condition that Bike Time
notify affected downtown businesses of the dates and times of street closures and the date
and time that No Parking restrictions go into effect on those streets.
COMMITTEE RECOMMENDATION: N/A
MUSKEGON BIKE TIME City Commission item (page 2)
New Requests for 2013:
Closing time for beer gardens - Request to keep the three beer gardens open until 12:00
a.m. with alcohol service ending at 11:30 p.m. instead of 11:00 p.m. on Thursday, Friday
and Saturday nights. They will shut the music off at 11:00 p.m. This will give patrons extra
time to leave the tents before they close, without having a mass exodus at 11:00 when the
music ends.
Requests requiring Commission approval that are the same as in past years:
• Street closures -- Bike Time requests permission to close certain street intersections in
the downtown area one day earlier than allowed in the special event policy, so that they
can work on event/tent set-up. They would like to close the intersections listed below
starting at noon on Wednesday, July 17 (instead of waiting til Thursday evening, July
18). The tents at these locations are large and will take some time to set up:
o Intersection of 6th Street and Western Avenue
o Intersection of 4th Street and Western Avenue
o Intersection of 2nd Street and Western Avenue
In order to minimize disruption to downtown businesses, Bike Time will keep Western
Avenue open on Thursday for limited business traffic. They will also leave the alley open off
the side streets south of Western Avenue.
No Parking signs will be put up on Wednesday, prohibiting parking after midnight on
Western Avenue (midnight on Wednesday night/Thursday morning). The Police
Department will not ticket vehicles parked on Western Ave. that are there for the businesses
that stay open past midnight on Wednesday (Mike’s Inn, Club Envy, Racquets, etc).
Bike Time will send letters to all homes/businesses on the affected streets, notifying them of
the street closure dates/times, and also when the No Parking signs will go up.
• Equipment rental fees and labor costs -- Bike Time has requested the waiver of some
City equipment rental fees. They have also requested to use their own labor pool rather
than City employees whenever possible. (see staff recommendation on page 1)
Date: March 12, 2013
To: Honorable Mayor and City Commissioners
From: Finance Department
RE: Implementation of Police Command Contract Retirement Changes
SUMMARY OF REQUEST: The City Commission recently approved the 2013-14
contract settlement with the Police Command Unit. To fully implement the retirement
provisions of this contract there are some additional steps required by MERS:
1. Step One: Close the Police Command Unit’s defined benefit (DB) pension plan to
new members. MERS allows each employee division to have only one open
retirement plan. All new hires into the City are covered by a defined contribution (DC)
plan so, over time, the DC plan will become the Command Unit’s dominant retirement
plan that will be open.
2. Step Two: Adopt the attached Employer Resolution Establishing Uniform Transfer
Provision. This will allow promoting patrol officers who currently have a DB pension
benefit to go into the Command Unit’s DB plan even though it is “closed”. Note: this
resolution will also apply to other situations in the City where an employee may go
from one unit to another. For example, in the past we have had Clerical Unit
employees become police officers or non-union employees. This is not common, but
does occur.
3. Step Three: Adopt the attached MERS Restated Uniform Defined Contribution
Program Resolution and MERS Restated Defined Contribution Plan Adoption
Agreement that provide for a new defined contribution (DC) retirement plan for the
Police Command unit. This new plan has the same benefit levels as the current
Police Patrol DC plan (6% employee contribution; 10% employer contribution).
Promoting patrol members who currently have a DC retirement benefit will go into this
new plan.
The net result of these changes will be to provide the mechanisms needed to implement
contract language that provides: “Effective January 1, 2013, all Patrol Unit members
entering the Command Unit shall keep their pension and retirement packages from the
Patrol Unit.”
FINANCIAL IMPACT: No new financial impact on the City.
BUDGET ACTION REQUIRED: None at this time. Future budgets will reflect the
changes made here.
STAFF RECOMMENDATION: Approval of the steps outlined above and
authorization for staff to execute documents needed to make this change.
COMMITTEE RECOMMENDATION: None.
EMPLOYER RESOLUTION ESTABLISHING
UNIFORM TRANSFER PROVISION
WHEREAS, the City of Muskegon
____________________________________________ is a participating
municipality or court in the Municipal Employees' Retirement System of Michigan ("MERS"); and
WHEREAS, the Standard MERS Transfer Rules became effective in August 2007; and
WHEREAS, under the Standard Rules, all transferees to a new division are covered under the
active employee plan in the new division; where the defined benefit plan in the new division is closed
to entrants, the accrued defined benefit (based on benefits, service and wages as of transfer date) of
transferees is frozen as of transfer date.
WHEREAS, pursuant to Retirement Board action on November 10, 2010, the employing
municipality or court will be allowed, on a one-time irrevocable and uniform basis, to adopt for all its
MERS divisions (present and future) an alternate policy which allows all transferred employees an
individual choice at the time of transfer to either be placed in: (1) the division’s open plan, or (2) the
closed plan if it is the same plan type, provided there are active employees remaining in the plan type.
WHEREAS, this alternate transfer provision applies to transferred employees only; rehired
employees will continue to be enrolled into the active plan; and
13
NOW THEREFORE BE IT RESOLVED, that effective ________________ 1st, 20___,
April
the Governing Body adopts this Resolution (or for a participating court, the Chief Judge by
Administrative Order) for all present and future employee divisions requiring that all transferred
employees (select only one):
shall be covered under the active employee plan in the division they are transferred into.
✔ shall be given the individual choice to either be placed in the open plan or the closed
division if it is the same plan type (in the division from which the employee is transferred
from) provided there are active employees remaining in the closed plan type.
CERTIFICATION FOR PARTICIPATING MUNICIPALITY OR COURT
I hereby certify that this Resolution was adopted by (check one):
✔ The Governing Body of the City of Muskegon
______________________________ at its meeting held
13
March 12
on ____________________, 20___.
Administrative Order No. __________ adopted by the Chief Judge of the
_____________________________, on ____________________, 20___.
(Signature of Authorized Official)
City Clerk
(Title)
Page 1 of 2
F94 ER Resol unif transfer 3-24-11
Example Scenarios of the Uniform Transfer Rules
Example 1
The City of Tree has two divisions: Division 01 has the MERS Defined Benefit Plan with a
2.0% multiplier. Division 99 converted from the MERS Defined Benefit Plan with a 2.25%
multiplier to the MERS Defined Contribution Plan in 2000. Thus for division 99 the Defined
Contribution Plan is the open plan, and the Defined Benefit Plan is the closed plan. However
in this scenario the City of Tree still has active employees that are covered under the closed
Defined Benefit Plan in division 99.
Under Standard Transfer Rules Transfer Rules with Employee Choice
John transfers from division 01 to division 99. John transfers from division 01 to division
Under the standard rules he would go into the 99. Under the alternative rules, he would
active plan, which is the Defined Contribution receive the choice to either join the closed
Plan. John’s accrued pension earned under the division with the same plan type (Defined
previous Defined Benefit Plan would be Benefit) having active employees, or he could
frozen and he would be enrolled in the freeze his accrued pension and enroll in the
Defined Contribution Plan moving forward. open Defined Contribution Plan. If John
chooses to enroll in the closed Defined
Benefit Plan, then his entire accrued pension
earned under the previous Defined Benefit
Plan with the 2.0% multiplier would be
transferred to the closed Defined Benefit Plan
with the 2.25% multiplier (all defined benefit
service applied to 2.25% multiplier).
Example 2
The City of Tree has two divisions: Division 01 has the MERS Defined Benefit Plan with a 2.0%
multiplier. Division 99 converted from the MERS Defined Benefit Plan with a 2.25% multiplier
to the MERS Defined Contribution Plan in 2000. Thus for division 99 the Defined Contribution
Plan is the open plan, and the Defined Benefit Plan is the closed plan. However in this scenario
the City of Tree has NO active employees under the closed Defined Benefit Plan in division 99.
Under Standard Transfer Rules Transfer Rules with Employee Choice
John transfers from division 01 to division 99. John transfers from division 01 to division 99.
Under the standard rules he would go into the He does not receive the choice to enroll in the
active plan, which is the Defined Contribution closed Defined Benefit Plan however, because
Plan. John’s accrued pension earned under the there are NO active employees in the closed
previous Defined Benefit Plan would be frozen plan. John’s accrued pension earned under the
and he would be enrolled in the Defined previous Defined Benefit Plan would be
Contribution Plan moving forward. frozen and he would be enrolled in the open
Defined Contribution Plan moving forward.
F94 ER Resol unif transfer 3-24-11 Page 2 of 2
Print Resolution
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4\UPJPWHS >H` 3HUZPUN 40 c c -H_ ^^^TLYZVMTPJOJVT
This Resolution, together with Section 19A of the MERS Plan Document and the MERS Defined
Contribution Plan Adoption Agreement, constitute the entire Benefit Program DC (“MERS Defined
Contribution Plan”) Plan Document.
WHEREAS, the MERS Plan Document of 1996, effective October 1, 1996, authorized a defined
contribution option (Section 19A, Benefit Program DC) as a new benefit program that a participating
municipality or participating court (“court”) may adopt for MERS members to be administered under the
discretion of the Municipal Employees’ Retirement Board as trustee and fiduciary, directly by (or through a
combination of) MERS or MERS’ duly-appointed third-party administrator.
WHEREAS, as a new provision, Section 19A, along with the remainder of the Plan, received from the
Internal Revenue Service a Letter of Favorable Determination (dated July 8, 1997, with most current Letter
dated June 15, 2005) that the Plan is a qualified Plan under Section 401(a) of the Internal Revenue Code,
and an exempt trust under Section 501(a).
WHEREAS, Benefit Program DC became operational in August 1997, following the July 8, 1997, Letter
of Favorable Determination.
WHEREAS, this Restated Uniform Resolution has been approved by the Board under the authority of
2004 PA 490 (amending 1996 PA 220), Section 36(2)(a); MCL 38.1536(2)(a), declaring that the Retirement
Board “shall determine . . . and establish” all provisions of the retirement system. Under this authority, the
Board authorized Section 19A, the Benefit Program DC, which shall not be implemented unless in strict
compliance with the terms and conditions of this Restated Resolution.
• It is expressly agreed and understood as an integral and nonseverable part of this Restated
Resolution that Section 43B of the Plan Document shall not apply to this Restated Uniform
Resolution and its administration or interpretation.
• As provided in Plan Document Section 19A(2), in the event any alteration of the terms or conditions
stated in this Restated Uniform Resolution is made or occurs, under Section 43B or other plan
provision or other law, it is expressly recognized that MERS and the Retirement Board, as sole
trustee and fiduciary of the MERS Plan and its trust reserves, and whose authority is nondelegable,
shall have no obligation or duty: to administer (or to have administered) the Benefit Program DC;
to authorize the transfer of any defined benefit assets to the Benefit Program DC; or to continue
administration by MERS (or any duly-appointed third-party administrator).
WHEREAS, concurrent with this 2010 Restated Resolution, and as a continuing obligation, this governing
body has completed and approved, and submitted to MERS documents necessary for adoption and
implementation of the MERS Benefit Program DC.
NOW, THEREFORE, BE IT RESOLVED that the governing body adopts MERS Benefit Program DC as
provided below.
Page 1 of 6
Form MD-069 (version 2011-01-31)
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I. NEW EMPLOYEES (Plan Sec 19A(4) – (10))
AVAILABLE FOR ADOPTION SO LONG AS THE TOTAL FUNDED PERCENT OF AGGREGATE
ACCRUED LIABILITIES AND VALUATION ASSETS OF ALL RESERVES SPECIFIED IN TABLE
13 (OR SUCCESSOR TABLE) FOR THE PARTICIPATING MUNICIPALITY OR COURT, AND FOR
THE AFFECTED MERS BENEFIT PROGRAM CLASSIFICATION(S) OF THE MOST RECENT
MERS ANNUAL ACTUARIAL VALUATION REPORT IS AT LEAST EIGHTY PERCENT (80%).
April 13
Effective the first day of __________________, 20____, (to be known as the ADOPTION DATE),
City of Muskegon
the ____________________________________________________ hereby adopts Benefit Program
(MERS municipality/court)
Police Command (Division 22)
DC for _____________________________________________________________________
(specify division #s)
first hired or rehired to the division at any time on and after the Adoption Date, and optional
participation for any employee or officer of this municipality otherwise eligible to participate in
MERS under Section 2B(3)(a)) of the Plan Document who has previously elected to not participate
in MERS. The employer shall establish the transfer rule for transferred employees in the Employer
Resolution Establishing a Uniform Transfer Provision. ONLY THOSE EMPLOYEES ELIGIBLE
FOR MERS MEMBERSHIP (SECTIONS 2B(3) AND 3 OF THE PLAN DOCUMENT) SHALL BE
ELIGIBLE TO PARTICIPATE.
(A) CONTRIBUTIONS shall be as allowed and specified in the MERS Defined Contribution
Program Adoption Agreement (Attachment 2, completed and approved and a certified
copy submitted to MERS concurrent with and incorporated by reference in this Resolution)
subject to the provisions of the Plan Document. A member is immediately vested
100% in any employee contributions (Section 19A(5)), and is vested in employer
contributions under the employer vesting schedule (Section 19A(6)).
(B) EARNINGS under the Adoption Agreement shall be defined as “Compensation” under
Section 2A(6) of the MERS Plan Document, being the Medicare taxable wages reported on
the member’s W-2 statement.
(C) VESTING shall be as allowed and specified under:
(1) Plan Section 19A(6): and
(2) the Adoption Agreement.
STOP If covering new employees only, skip II and go to III on page 5. STOP
Page 2 of 6
Form MD-069 (version 2011-01-31)
4,9: 9LZ[H[LK <UPMVYT +LÄULK *VU[YPI\[PVU 7YVNYHT 9LZVS\[PVU
II. OPTIONAL PROVISION FOR CURRENT MERS DEFINED BENEFIT MEMBERS WHERE
BENEFIT PROGRAM DC FOR NEW EMPLOYEES ESTABLISHED (Plan Sec 19A(18)-(21))
THIS OPTIONAL PROVISION SHALL ONLY BE SELECTED WHERE THE TOTAL FUNDED
PERCENT OF AGGREGATE ACCRUED LIABILITIES AND VALUATION ASSETS OF ALL
RESERVES SPECIFIED IN TABLE 13 (OR SUCCESSOR TABLE) FOR THE PARTICIPATING
MUNICIPALITY OR COURT, AND FOR THE AFFECTED MERS BENEFIT PROGRAM
CLASSIFICATION(S) OF THE MOST RECENT MERS ANNUAL ACTUARIAL VALUATION
REPORT IS AT LEAST EIGHTY PERCENT (80%).
IT IS ADDITIONALLY RESOLVED, as provided in each of the following paragraphs:
(A) Effective on the Adoption Date, pursuant to Plan Section 19A(18) all current MERS
defined benefit members who are members of the same employee classification described
in Section I above on the Adoption Date shall:
THE GOVERNING BODY SHALL SELECT ONLY ONE OF THE FOLLOWING:
where vested under this municipality’s applicable MERS vesting program
(10, 8, or 6 years)
where the employee has at least the following number of years of credited service
for this municipality on Adoption Date:______________ (insert whole number less
than vesting program)
without regard to vesting
be offered the opportunity to irrevocably elect coverage under Benefit Program DC, under the
detailed procedures provided in Plan Section 19A(19)-(21).
Section 19A(19) specifies an employee’s written election to participate shall be filed with MERS:
(a) not earlier than the last day of the third month after this Resolution is adopted and received
by MERS; and (b) not later than the first day of the first calendar month that is at least six months
after MERS receives this Resolution. This means each eligible employee will have about 90 days to
make the decision.
After MERS receives this Resolution, this governing body’s authorized official and eligible
employees will be advised by MERS of the election window timelines and other information to
consider in making the irrevocable decision whether to participate in Benefit Program DC.
Participation for those electing coverage shall be effective the first day of the first calendar month
at least six (6) months after MERS’ receipt of the Resolution, here designated as being the month
of _________________________, 20____, (insert month and year) which shall be known as the
“CONVERSION DATE.”
Page 3 of 6
Form MD-069 (version 2011-01-31)
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The opportunity for current employees on the Adoption Date to participate in the Benefit Program
DC shall (select one of the following two choices):
apply to all employees who separate from or terminate employment with this
municipality after the Adoption Date and before the Conversion Date, so long as
the employee does not receive a retirement allowance (including distributions from
Benefit Programs DC or H) from MERS based on service for this municipality.
not apply to any employee who separates from or terminates employment with this
municipality after the Adoption Date.
(B) CONTRIBUTIONS shall be as provided in Section I (A) above.
(C) EARNINGS shall be as provided in Section I (B) above.
(D) VESTING shall be as provided in Section I (C) above, and participants shall be credited, on
participant written request and MERS verification of such service, with all eligible service, if
any, specified in Plan Section 19A(3):
Where a member has previously acquired in the employ of any participating
municipality or court:
(a) not less than one year of defined benefit service (including Benefit
Program H, Hybrid) in force with any participating municipality or court;
(b) eligible credited service where the participating municipality or court has
adopted the Reciprocal Retirement Act, 1961 PA 88;
(c) at least 12 months in which employer contributions by a participating
municipality or court have been made on behalf of the member under
Benefit Program DC or Benefit Program H,
such service shall be applied toward satisfying the vesting schedule for employer
contributions.
(E) For each employee irrevocably electing to participate in Benefit Program DC, then under
Plan Section 19A(21), MERS shall transfer to the member’s credit (as adjusted through
MERS’ records to the Conversion Date) the greater of:
(1) The member’s accumulated contributions in the reserve for employee contributions; or
(2) The actuarial present value (as determined in Paragraph (F) below).
The transfer shall be made approximately 30 calendar days after the Conversion Date, and
the transfer amount shall include pro-rated regular interest at the regular Board-established
rate for crediting of interest on member’s accumulated contribution in the defined benefit
program, measured from the Conversion Date to the actual transfer date.
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(F) Per Plan Section 19A(21)(b)(i), the MERS Retirement Board has established the
assumptions for calculation of the actuarial present value of a member’s accrued benefit
that may be transferred. The assumptions are:
(1) The interest rate in effect as of the Adoption Date, to determine actuarial
present value, shall be the Board-established investment earnings rate
assumption (currently eight percent (8.00%)).
(2) The funded level for the member’s specific MERS division (total funded
percentage of the present value of accrued benefits which shall be determined
using Termination Liability under Table 12 or successor table and valuation assets
of all reserves using Table 13) as of the Adoption Date from the most recent
MERS annual actuarial valuation report data provided by MERS’ actuary. In the APV
calculation, the funded level used shall be:
THE GOVERNING BODY SHALL SELECT ONLY ONE OF THE FOLLOWING:
Table 12 Termination Liability funded level for the division (not less than
80% nor exceeding 100% funded level).
If greater than the division’s funded level but not more than 100% funded
level, then MERS is directed to compute the funded percentage for the
transfer calculation on _______% funded basis (insert number greater
than the division’s Table 12 Termination Liability funded level percentage
but not more than 100%). Where less than 100% funded level exists,
this governing body recognizes that such direction shall increase its
pension funding liability. MERS shall not implement such direction unless
the governing body forwards to MERS sufficient cash up to the funded
level selected for all members prior to the Conversion Date; if sufficient
cash is not forwarded, then the governing body expressly covenants
with MERS and directs, as a condition of this selection, to MERS billing
and the governing body remitting to MERS all contributions necessary to
fund the unfunded liability occasioned by the aggregate transfer of the
difference between the actual funded level for the division and funded
level directed above over a period of four (4) years.
III. EFFECTIVENESS OF THIS RESTATED RESOLUTION
BE IT FINALLY RESOLVED: This Resolution shall have no legal effect under the MERS Plan
Document until a certified copy of this adopting Resolution shall be filed with MERS, and MERS
determines that all necessary requirements under Plan Document Section 19A, the Adoption
Agreement, and this Resolution have been met. All dates for implementation of Benefit Program
DC under Section 19A shall be determined by MERS from the date of filing with MERS of this 2010
Restated Resolution in proper form and content. Upon MERS determination that all necessary
documents have been submitted to MERS, MERS shall record its formal approval upon this
Resolution, and return a copy to the Employer’s designated primary contact.
Page 5 of 6
Form MD-069 (version 2011-01-31)
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In the event an amendatory Resolution or other action by the municipality is required, such
Resolution or action shall be deemed effective as of the date of the initial Resolution or action
where concurred in by this governing body and MERS (and any third-party administrator selected
by MERS, if applicable and necessary). Section 54 of the Plan Document shall apply to this
Resolution and all acts performed under its authority. The terms and conditions of this Restated
Resolution supersede and stand in place of any prior resolution, and its terms are controlling.
I hereby certify that the above is a true copy of a Resolution adopted at the official meeting held on
March 12 13
_______________________, 20____. _____________________________________
(Signature of authorized official)
Please send MERS fully executed copy of:
• MERS 2010 Restated Uniform Defined Contribution Program Resolution
(this form, MD-069)
• MERS Restated Defined Contribution Plan Adoption Agreement (MD-070)
• Certified minutes stating governing body approval, and/or union contract language
Received and Approved by the Municipal Employees’ Retirement System of Michigan
Dated: ____________________, 20____ ________________________________________
(Authorized MERS signatory)
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Form MD-069 (version 2011-01-31)
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(KVW[PVU (NYLLTLU[
1134 Municipal Way Lansing, MI 48917 | 800.767.2308 | Fax 517.703.9711 www.mersofmich.com
The Employer, a participating municipality or participating court (“court”) within the State of Michigan that has
adopted MERS coverage, hereby establishes the following MERS Benefit Program: Defined Contribution
under MERS Plan Document (“MERS Defined Contribution Plan”) as authorized by Section 19A of the
Municipal Employees’ Retirement System of Michigan Plan Document. All references to “Plan Document”
are to sections of the MERS Plan Document; any reference to “Plan,” the “MERS Plan,” “Plan Participant,”
“Participant,” or “Program,” shall mean the MERS Defined Contribution Plan, unless otherwise specified.
This Adoption Agreement, together with Section 19A of the MERS Plan Document and the MERS Restated
Uniform Defined Contribution Program Resolution (“Resolution”), constitute the entire MERS Benefit Program
Defined Contribution Plan Document.
I. EMPLOYER: _______________________________________________________________________________
City of Muskegon
Name of municipality or court
II. EFFECTIVE DATE
1. If this is the initial Adoption Agreement relating to the MERS Defined Contribution Plan for this
Division, the Effective Date of the Benefit Program here adopted shall be the first day of:
____________________________.
April 2013
Month and Year
2. If this is an amendment and restatement of an existing adoption agreement relating to the
MERS Defined Contribution Plan for this Division, the effective date of this amendment and
restatement shall be the first day of: __________________________. This adoption agreement is
Month and Year
intended to replace and serve as an amendment and restatement of the Employer’s preexisting
plan, which was originally effective on the first day of: _______________________________.
Month and Year
III. ELIGIBILITY REQUIREMENTS
Only those Employees eligible for MERS Membership (Section 3 of the MERS Plan Document) shall
be eligible to participate in the MERS Defined Contribution Plan. A copy of ALL employee enrollment
forms must be submitted to MERS. The following group(s) of Employees are eligible to participate in
the Plan:
Police Command Officers (Division 22)
Specify employee classification and division numbers
Page 1 of 4
Form MD-070 (version 2011-09-13)
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IV. CONTRIBUTION PROVISIONS
1. The Employer shall contribute on behalf of each Participant _______% of Earnings or
10.0
$______________ for the calendar year (subject to the limitations of Sections 415(c) of the
n/a
Internal Revenue Code).
2. Each Participant is required to contribute _______% of Earnings for the calendar year as
6.0
a condition of participation in the Plan. (Write “0” if no contribution is required.) *If other
contribution options are provided, please list on separate sheet of paper and attach to
Adoption Agreement.
If Employee contributions are required, an Employee shall not have the right to discontinue or
vary the rate of such contributions after becoming a Plan Participant.
The Employer hereby elects to “pick up” the Mandatory/Required Employee contribution.
The “pick-up” provision allows the employer to direct mandatory employee contributions
to be pre-tax.
■ Yes No
[Note to Employer: Picked up contributions are excludable from the Employee’s gross
income under Section 414(h)(2) of the Internal Revenue Code of 1986 only if they meet the
requirements of Rev. Rul. 2006-43, 2006-35 I.R.B. 329. Those requirements are (1) that the
Employer must specify that the contributions, although designated as Employee contributions,
are being paid by the Employer in lieu of contributions by the Employee; and (2) the Employee
must not have the option of receiving the contributed amounts directly instead of having them
paid by the Employer to the Plan. The execution of this Adoption Agreement by the Employer
shall constitute the official action required by Revenue Ruling 2006-43.]
3. Each Employee may make a voluntary (unmatched), after-tax contribution, subject to the
limitations of Section 415 of the Internal Revenue Code.
4. Employer contributions and Employee contributions shall be contributed to the Trust in
accordance with the following payment schedule:
Weekly Bi-weekly Monthly
■
V. EARNINGS
Earnings shall be defined as “compensation” under Section 2A(6) of the MERS Plan Document, being
the Medicare taxable wages reported on the Employee’s W-2 statement.
Page 2 of 4
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VI. VESTING PROVISION FOR EMPLOYER CONTRIBUTIONS AND NORMAL RETIREMENT AGE
The Employer hereby specifies the following vesting schedule (choose one):
Immediate Vesting upon Participation
Cliff Vesting: The participant is 100% vested upon a stated number of years. Stated
year may not exceed maximum 5 years of service:
Stated Year: 1 2 3 4 5
Graded Vesting Percentage per year of service: Employers can select the percentage
■
of vesting with the corresponding years of service, however the scale cannot exceed
a maximum of six years of service to reach 100% vesting, nor less than the stated
minimums below:
20
_____ % after 1 year of service.
40
_____ % after 2 years of service.
60
_____ % (not less than 25%) after 3 years of service.
80
_____ % (not less than 50%) after 4 years of service.
100
_____ % (not less than 75%) after 5 years of service.
_100_ % (not less than 100%) after 6 years of service.
Notwithstanding the above, a member shall be vested in his/her entire employer contribution account,
to the extent that the balance of such account has not previously been forfeited, if he/she is employed
on or after his/her Normal Retirement Age. “Normal Retirement Age” shall be presumed to be age 60
(unless a different normal retirement age is here specified:_______).
50
In addition, notwithstanding the above, in the event of disability or death, a member or his/her
beneficiary shall be vested in his/her entire employer contribution account, to the extent that the
balance of such account has not previously been forfeited as described in Section 19A(7) of the MERS
Plan Document.
VII. Loans (not more than two) are permitted under the Program. MERS recommendation is “No,” not to
allow loans: loans permit your employees to borrow against their retirement account.
■
Yes No
VIII. The Plan will accept an eligible rollover distribution from an eligible retirement plan described in
Section 401(a)(including “401(k)”) or 403(a) of the Code, an annuity contract described in Section
403(b) of the Code, an eligible deferred compensation plan described in Section 457(b) of the Code
maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or
political subdivision of a state, or an individual retirement account or annuity described in Section
408(a) or 408(b) of the Code, including after-tax employee contributions, as applicable. The Plan will
account separately for pre-tax and post-tax contributions and earnings thereon.
Page 3 of 4
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IX. The Employer hereby agrees to the provisions of the MERS Uniform Defined Contribution Plan and
agrees that in the event of any conflict between MERS Plan Document Section 19A and the MERS
Defined Contribution Plan, the provisions of Section 19A shall control.
X. The Employer hereby appoints MERS as the Plan Administrator pursuant to the terms and conditions
of the Plan.
XI. The Employer hereby agrees to the provisions of the Plan.
XII. The Employer hereby acknowledges it understands that failure to properly fill out this Adoption
Agreement may result in the ineligibility of the Plan in the MERS Benefit Program Defined Contribution.
In Witness Whereof, the Employer hereby causes this Agreement to be executed on
this ________ day of _______________, 20____.
12th March 13
City of Muskegon
Employer:
Authorized Signature:
Mayor
Title:
Witness:
Page 4 of 4
Form MD-070 (version 2011-09-13)
Date: March 12, 2013
To: Honorable Mayor and City Commission
From: Department of Public Works – Director
RE: Water Filtration Plant Sodium Hypochlorite Feed Pump
Replacement
SUMMARY OF REQUEST:
Authorize staff to purchase (2) 520US Watson-Marlow Hose pumps from the
sole source bidder Mattoon-Lee for a sum of $10,880.00.
FINANCIAL IMPACT:
None
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize staff to purchase (2) 520US Watson-Marlow Hose pumps from the
sole source bidder Mattoon-Lee for a sum of $10,880.00.
Date: February 26, 2013
To: DPW Director – Mohammed Al-Shatel
From: Water Filtration Plant
RE: Water Filtration Plant Sodium Hypochlorite Feed Pump
Replacement
Staff requests approval to purchase (2) replacement Watson-Marlow sodium
hypochlorite feed pumps from Mattoon-Lee, the dealer for this region for a cost of
$10,880.00. The dealer is the sole source for the pumps. The bid is attached.
Operators noted problems with control of the chlorine feed system. Pumps were
sent to the dealer for inspection and repair estimates. The cost of the repair is
about $1,000.00 dollars less than a new pump, and dealer recommends replacing
the pumps. Two pumps are of the same age and have same operating control
failures.
The pumps are critical equipment for the plant process to be reliable.
Date: March 12, 2013
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Consideration of Bids for:
Sanitary Sewer Lining (S-663)
SUMMARY OF REQUEST:
Award the city’s portion of the County’s bid to Layne Inliner, LLC out of Hilliard, OH for
$19,206 as per the engineer’s recommendation for Award. The City’s portion consists of
lining 360’ of 12” clay pipe in the alley south of Hackly between Beidler and Edgebrook to
FINANCIAL IMPACT:
The construction cost of $19,206 plus engineering
BUDGET ACTION REQUIRED:
None
STAFF RECOMMENDATION:
Award the lining of the 12” sanitary sewer line to Layne Inliner, LLC out of Hilliard, OH.
COMMITTEE RECOMMENDATION:
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\CONAWA 3-12-13 (2).doc
Date: March 12, 2013
To: Mayor and City Commission
From: Water Filtration - DPW
RE: State of Michigan Public Act 399 Reliability Study
SUMMARY OF REQUEST:
Authorize staff to enter into an agreement with FTC&H for the purpose
of completing a Reliability Study of the Water Filtration Plant for a cost of
$37,562.00
FINANCIAL IMPACT:
$37,562.00.
BUDGET ACTION REQUIRED:
None.
STAFF RECOMMENDATION:
Authorize staff to enter into an agreement with FTC& H, the lowest
responsible bidder for a Water Plant Reliability Study for a cost of
$37,562.00.
Date: March 7, 2013
To: Mohammed Al-Shatel, Director of DPW
From: Water Filtration Plant
RE: Reliability Study Bids and staff recommendation
Reliability Study RFP bid tabulation
Company Fee Expected Hrs. Notes
All work done
inhouse.
Completed past
Fishbeck, Thompson, Carr &
study in 2008.
Huber, INC.
Most familiar with
1515 Arboretum Dr. SE
$37,562.00 286 hrs current plant.
Grand Rapids, MI 49546
Most work done
Hubbel Roth and Clark,
inhouse.
INC.
Completed prior
801 Broadway NW, Suite
engineering of
215
plant expansion.
$39,300.00 383 hrs
Grand Rapids, MI 49504
No past
involvement with
Jones and Henry Engineers,
plant, work done
LTD
with county
4791 Campus Dr
$35,230.00 436 hrs wastewater.
Kalamazoo, MI 49008
Past work on
Black and Veatch Corp.
distribution study,
125 Ottawa Ave.
highest fee.
$96,000.00 666 hrs
Grand Rapids, MI 49503
Staff recommends awarding the bid for a Water Filtration Plant 5 year
Reliability Study to FTC&H , the lowest responsible bidder for a cost
$37,562.00. The study will meet the requirements as specified in the
State of Michigan Public Act 399. The number of hours expected are
lowest because of in house staffing and familiarity with the plant.
Date: March 12, 2013
To: Honorable Mayor and City Commissioners
From: Ann Marie Cummings, City Clerk
RE: Recommendation for Annual Renewal of Liquor
Licenses
SUMMARY OF REQUEST: To adopt a resolution recommending non-
renewal of those liquor license establishments who are in violation of
Section 50-146 and 50-147 of the Code of Ordinances for the City of
Muskegon. These establishments have been found to be in non-
compliance with the City Code of Ordinances and renewal of their liquor
licenses should not be recommended by the City Commission. If any of
these establishments come into compliance by March 22, 2013, they will
be removed from this resolution, and recommendation for their renewal
will be forwarded to the Liquor Control Commission.
FINANCIAL IMPACT: None.
BUDGET ACTION REQUIRED: None.
STAFF RECOMMENDATION: Adoption of the resolution.
CITY COMMISSION MEETING DATE
March 12, 2013
Date: February 11, 2013
To: Honorable Mayor and City Commissioners
From: Cathy Brubaker-Clarke, Director of Community &
Economic Development
Re: Special Event Request – Lakeshore Art Festival
SUMMARY OF REQUEST: The Muskegon Lakeshore Chamber of Commerce has filed a special
event application for the Lakeshore Art Festival to be held in downtown Muskegon on July 5 and 6,
2013. A new group has taken over the event, and this is their first year. They are requesting to
partner with the City and have the City sponsor a portion of the event. This would involve the waiver
of City costs associated with Public Works labor and equipment rental charges, as well as costs for
police services.
FINANCIAL IMPACT: Estimated police costs are $840; estimated DPW costs will be
provided.
BUDGET ACTION REQUIRED: None
STAFF RECOMMENDATION: Staff recommends if the applicant organization picks up items
such as picnic tables, barricades, and trash cans for distribution at the proper locations, the City will
waive the equipment rental charges. This must be coordinated with City staff. The City generally
does not waive charges for police officers at events.
COMMITTEE RECOMMENDATION: N/A
Date: March 12, 2013
To: Honorable Mayor and City Commissioners
From: Engineering
RE: Grant Application for Sanitary sewer evaluation
SUMMARY OF REQUEST:
Authorize Fleis & Vandenbrink (F & V) to submit S2 Planning Grant Application to the
Michigan Department of Environmental Quality soliciting funds to perform studies on the
City’s sanitary sewer collection system in two areas within the City, Clay Hill & Oak
Grove. The studies will be performed to evaluate any I/Is (inflow and infiltration) with
the aforementioned areas.
Should F & V be successful in securing the grant, they would expect to be hired to
perform the studies at a cost of $465,000. 90% of the engineering cost is covered by
the grant and the City’s share would be $65,000.
It is important to realize that should we proceed with the application and we get the
grant that we will be obligated to implement the recommendation within 3-years and
failure to do so will result in the City having to reimburse the state any grant funds
spent.
FINANCIAL IMPACT:
None at this time
BUDGET ACTION REQUIRED:
None at this time.
STAFF RECOMMENDATION:
Authorize F & V to submit the grant application on behalf of the City.
COMMITTEE RECOMMENDATION:
C:\Documents and Settings\Potter\Local Settings\Temporary Internet Files\OLK8\Comm agenda authorizing F V to
submitt grant application 3-12-13.doc
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